Dangote Refinery Hits Snag: Nigeria’s Oil Giant Resells Crude Amid Technical Woes

The Dangote Petroleum Refinery, Africa’s largest and most ambitious oil project, in a stunning twist, is facing unprecedented technical challenges, forcing it to resell crude oil cargoes from the United States and Nigeria.

Despite its grand opening in January 2024, the refinery’s crude distillation unit (CDU) is struggling to operate efficiently, casting a shadow over Nigeria’s hopes of becoming a fuel exporter.

The $20 billion facility, brainchild of Africa’s richest individual Aliko Dangote, aims to transform Nigeria’s oil and gas sector and eliminate reliance on imported fuel.

However, the current hurdles threaten to derail this vision. The refinery has resold rare cargoes, including Nigerian Escravos and Forcados grades, as well as U.S. WTI Midland crude, in a move that raises concerns about its operational capabilities.

As the Dangote Group plans to list its refinery and fertilizer subsidiary on the Nigerian stock exchange by early 2025, the technical issues pose a significant obstacle.

The refinery’s reliance on imported U.S. crude, with over 16 million barrels purchased in 2024 alone, is expected to continue, adding to the pressure.

Will the Dangote Refinery overcome these technical challenges and achieve its ambitious goals, or will Nigeria’s oil dreams remain elusive? Only time will tell.

Credit: Nairaland